Accounting AR

Path: User Guide > Accounting > Accounts Receivable > Finance Charges Finance Charges

Finance Charges are used to: add interest to a balance, add service fees for transactions, add late fees, or balance transfer fees. Before you begin, there needs to be a decision on the frequency of processing

Permissions

Users will require FINCHARGE – view permission in order to see the menu option on the Accounts Receivable menu and use the Finance Charges form

Disabling Finance Charges

Customers may be excluded from the Finance Charge process. These customers must have the “Disable Finance Charges” checkbox selected before the process begins (can be found on Accounting menu > Customer > Customer / Vend tab > Company sub tab).  Default is un-checked – to include all Customers

Set Up a Master No.

1. Create an M-Type Master
2. Set the Default Account on this new Master to the GL Account to which you wish to post the charge

Process a Finance Charge

1. Go to Accounting menu > Accounts Receivable > Finance Charges.  The Finance Charges window will open
2. Define the values for the fields below and click Run. Note: highlight range to select Customer(s) for applicable Finance Charge
3. A confirmation window will appear.  Click Yes to continue. Q360 will process the data and look at posted Invoices with totals over the threshold that are at least that many days overdue (specified above)
4. Q360 will open the Invoices to Print form. Alternatively, users can open the form via Accounting menu>Accounts Receivable> Print Invoices

• Company No. – Defaults to 01. Select from drop-down list. Values are based on the Company Setup (Accounting menu > Admin)
• # Days Overdue – Default is 10. This field is editable. This looks at the number of days the invoice is out compared to the Due Date selected in the Finance Charges window.  Note: if you set the # of Days Overdue to a higher value, it will minimize the number of Invoices generated
• Finance Percentage – Defaults to 1.50%. This percentage is used to calculate the finance charges (percentage* Invoice total). This percentage is editable. It can be set based on the frequency that the finance charges are generated
• Master No.  Users can setup their own Master (Master – M Type, Sales Revenue points to the Finance Charges account (setup in GL Accounts) and its own unique number so it’s easier to find) This field is manual input
• Due Date – Defaults to the current date. Typically is the date the finance charges are run in Q360. Click on the Calendar icon to change
• Threshold – Defaults to zero dollars. This is the minimum dollar amount on the invoice total before Q360 will charge finance charges against. This field is editable

View / Print Invoices Generated:

1. Invoices to Print form will open automatically (see step 4 above).  Change the Type to FINANCE. Click the refresh button to refresh the grid and see Invoices that have been generated
2. Note: The Terms, Currency, and Tax Applicable default from the Customer record. The Master No. is pulled from the Finance Charges form. The Invoice type defaults to FINANCE
3. In the Invoices To Print form, select the Invoices you want to process and continue with them as you would with regular Invoices
4. When posted, the Invoice will show AR Journal Entries for the Finance Charge applied.  These entries may be viewed in the AR Journal as well

For additional information about Finances Charges, see Finance Charge Best Practices